Overview
- Bloomberg News reports that ON Semiconductor is working with advisers to explore acquiring Allegro Microsystems, a smaller competitor in the automotive sensor market.
- Allegro's market valuation stands at $4.11 billion, while ON Semiconductor is valued at $19.83 billion, according to LSEG data.
- ON Semiconductor's interest in Allegro aligns with its goal to strengthen its position in automotive semiconductors, particularly in vehicle electrification and automation technologies.
- Allegro appointed Mike Doogue as its new president and CEO last Monday, but the company has not indicated whether it is open to a sale.
- ON Semiconductor recently announced a restructuring plan with 2,400 layoffs in 2025, following a revenue forecast below Wall Street expectations due to weaker demand for automotive chips.